newswatcher
19th Jun 2001, 15:25
Reutres reports that:
"Cathay Pacific Airways Ltd said on Monday that it remains hopeful for a peaceful settlement of a pay dispute with pilots, but warned that pilot industrial action would cause damage to its staff and Hong Kong.
"Pilot industrial action will cause a great deal of disruption to almost everyone," Cathay Pacific Personnel Director William Chau said in a statement to pilots. "This would be damaging for all our staff, our customers, the Hong Kong public and Hong Kong's international status. We will do our best to prevent this from happening."
Chau, speaking at a "conciliation meeting" between Cathay management, the pilots' union and the Hong Kong government's Labour Department, said the company remains "willing to negotiate around the clock if necessary to reach a sensible agreement."
He said such an agreement "not only addresses the competitiveness of the airline, but is also practical within the Hong Kong social and economic environment."
Cathay says pilots are seeking pay hikes of up to 32 percent, but the union says it merely wants the airline to cancel a final round of pay cuts agreed under a cost reduction plan in 1999. The cuts are scheduled to take effect in July.
The Hong Kong Aircrew Officers Association, which represents about 1,200 of Cathay's 1,400 pilots, will hold a vote on Wednesday on a motion to take "limited industrial action" from July 1 if the dispute cannot be resolved.
The group has not specified the action, but in the past, such actions have involved "sick-outs" and work-to-rule slowdowns that have disrupted flight schedules and required additional aircraft and crews to be chartered.
This could disrupt travel plans for thousands of travellers at the start of the busy summer vacation season.
Pilots also want to resolve a long-standing dispute over the airline's rostering system, which they say is inefficient because it limits their flying time.
Talks between the airline and the pilots over the cost cutting programme broke down in April. Industrial action was only averted in December after a last minute agreement to resume rostering talks.
Cathay says cost cuts are vital to keeping its competitive edge, but pilots question this, particularly after Cathay earned a record HK$5 billion (US$641 million) in 2000.
In June 1999, after a lengthy pilot sick-out, Cathay settled a pay dispute with senior pilots after most crew accepted cuts of up to 22 percent over three years. The pay package was intended to save the airline HK$1.4 billion over 10 years.
Cathay is 25.5 percent owned by CITIC Pacific Ltd and 45.3 percent-owned by Swire Pacific Ltd. Its shares ended unchanged at HK$10.15 in Hong Kong trade on Monday.
"Cathay Pacific Airways Ltd said on Monday that it remains hopeful for a peaceful settlement of a pay dispute with pilots, but warned that pilot industrial action would cause damage to its staff and Hong Kong.
"Pilot industrial action will cause a great deal of disruption to almost everyone," Cathay Pacific Personnel Director William Chau said in a statement to pilots. "This would be damaging for all our staff, our customers, the Hong Kong public and Hong Kong's international status. We will do our best to prevent this from happening."
Chau, speaking at a "conciliation meeting" between Cathay management, the pilots' union and the Hong Kong government's Labour Department, said the company remains "willing to negotiate around the clock if necessary to reach a sensible agreement."
He said such an agreement "not only addresses the competitiveness of the airline, but is also practical within the Hong Kong social and economic environment."
Cathay says pilots are seeking pay hikes of up to 32 percent, but the union says it merely wants the airline to cancel a final round of pay cuts agreed under a cost reduction plan in 1999. The cuts are scheduled to take effect in July.
The Hong Kong Aircrew Officers Association, which represents about 1,200 of Cathay's 1,400 pilots, will hold a vote on Wednesday on a motion to take "limited industrial action" from July 1 if the dispute cannot be resolved.
The group has not specified the action, but in the past, such actions have involved "sick-outs" and work-to-rule slowdowns that have disrupted flight schedules and required additional aircraft and crews to be chartered.
This could disrupt travel plans for thousands of travellers at the start of the busy summer vacation season.
Pilots also want to resolve a long-standing dispute over the airline's rostering system, which they say is inefficient because it limits their flying time.
Talks between the airline and the pilots over the cost cutting programme broke down in April. Industrial action was only averted in December after a last minute agreement to resume rostering talks.
Cathay says cost cuts are vital to keeping its competitive edge, but pilots question this, particularly after Cathay earned a record HK$5 billion (US$641 million) in 2000.
In June 1999, after a lengthy pilot sick-out, Cathay settled a pay dispute with senior pilots after most crew accepted cuts of up to 22 percent over three years. The pay package was intended to save the airline HK$1.4 billion over 10 years.
Cathay is 25.5 percent owned by CITIC Pacific Ltd and 45.3 percent-owned by Swire Pacific Ltd. Its shares ended unchanged at HK$10.15 in Hong Kong trade on Monday.